Morning News Call - India, May 3

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FACTORS TO WATCH
5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
GMF: LIVECHAT - DEEP DIVE INTO U.S. JOBS DATA
Wilmington Trust chief investment officer Tony Roth delves into the details of
the hour-old U.S. jobs report for April and calls out the significance of the
data for global investors at 7 pm IST. To join the conversation, click on the
link: here
INDIA TOP NEWS
• No bidders yet for India's Jet Airways, staff consider bankruptcy
proceedings
Potential bidders for Jet Airways have so far failed to show any firm
interest in bailing out the struggling airline, a source involved in the matter
said, increasing the likelihood that the company will face bankruptcy
proceedings.
• India's April jobless rate rises to 7.6 percent
India's unemployment rate in April rose to 7.6 percent, the highest since
October 2016, and up from 6.71 percent in March, according to data compiled by
the Centre for Monitoring Indian Economy (CMIE) released late on Wednesday.
• Pepsi withdraws Indian potato farmer lawsuits after political pressure
PepsiCo has agreed to withdraw lawsuits against Indian potato farmers it
alleged infringed a patent by cultivating a variety grown exclusively for its
Lay's potato chips.
• Foreign investors in India's NSE urge bourse not to challenge fine
Some foreign investors in India's National Stock Exchange, which the market
regulator has slapped with a steep fine and a six-month ban from public
fundraising, are urging the bourse not to challenge the penalty and focus
instead on a long-awaited initial public offering.
• India evacuating 1.2 million people as cyclone menaces east coast
India has accelerated efforts to evacuate more than a million people along
its northeast coastline as a cyclone intensifies ahead of landfall on Friday,
with thousand of villagers piling household possessions on to trucks before
fleeing their homes.
• India's factory growth hits 8-mth low in April amid election caution - PMI
India's factory activity expanded at its slowest pace in eight months in
April as growth in new orders and output dipped as national elections got under
way, a private business survey found.
• Weddings, lower prices could lift Indian gold demand in June qtr - WGC
India's gold demand is expected to rise in the June quarter from a year ago
due to a higher number of auspicious days for weddings and a fall in local
prices ahead of a key festival, the World Gold Council said on Thursday.
GLOBAL TOP NEWS
• Democrats ramp up pressure on Trump as Pelosi accuses Barr of 'crime'
Democrats intensified their pressure on President Donald Trump's
administration on Thursday as U.S. House Speaker Nancy Pelosi accused Attorney
General William Barr of committing a crime by lying to lawmakers and a key
committee chairman threatened to hold Barr in contempt of Congress.
• Tesla ends 'Spartan diet' and seeks $2.3 billion to fund expansion
Tesla will raise up to $2.3 billion in new capital, renouncing what Elon
Musk called a "Spartan diet" and easing Wall Street concerns about the
money-losing company's ability to overcome a drop in sales and build new product
lines.
• Venezuela opposition figure, facing arrest warrant, says he met with
generals
Venezuelan opposition politician Leopoldo Lopez, evading arrest in a Spanish
diplomatic residence, on Thursday disclosed he met with senior military
officials before a failed uprising against President Nicolas Maduro this week.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
SGX Nifty nearest-month futures were down 0.1 percent at 11,743.
The Indian rupee is expected to open little changed against the dollar as
Brent crude’s slide to a one-month low would help offset losses in most regional
currencies.
Indian government bonds are likely to edge higher in early trade, as a
continued fall in crude oil prices raises hopes of inflation staying below
target. The yield on the benchmark 7.26 percent bond maturing in 2029 is likely
to trade in a range of 7.36 percent - 7.41 percent today, a trader with a
private bank said.
GLOBAL MARKETS
• U.S. stocks eased further from recent record highs on Thursday as energy
shares dropped along with oil prices and investors continued to digest comments
by Federal Reserve Chairman Jerome Powell.
• Asian share markets were subdued amid thin holiday trade although the
dollar found support as investors pared expectations for a U.S. rate cut this
year while oil prices loitered near one-month lows on oversupply fears.
• The dollar looked set to end the week with a firmer tone as markets scaled
back bets on a U.S. rate cut, though much depends on what jobs data due later in
the session says about the health of the economy and wages.
• U.S. Treasury yields rose to one-week highs on Thursday as investors
reduced bets that the Federal Reserve will cut rates this year, after bullish
economic comments from Federal Reserve Chairman Jerome Powell on Wednesday.
• Oil prices slipped, extending a steep fall from the previous session on
surging U.S. output and an expected supply increase from producer club OPEC and
putting crude on track for a second week of declines.
• Gold steadied near a four-month low, as comments from U.S. Federal Reserve
Chairman Jerome Powell reduced expectations of a near-term rate cut, putting
bullion on track for a weekly fall.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 69.49/69.52 May 2 $86.22 mln $81.14 mln
10-yr bond yield 7.39 pct Month-to-date ---- ----
Year-to-date $9.77 bln $2.64 bln
For additional data:
India govt bond market volumes
Stock market reports
Non-deliverable forwards data
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 69.36 Indian rupees)
(Compiled by Nachiket Tekawade in Bengaluru)